What is private debt? Private debt is where someone goes to his neighbor and asks to borrow $5. A loan at the bank, or to buy a car, or a mortgage, or credit cards is NOT private debt. In fact, IT IS NOT DEBT AT ALL!

It is the method that Government and the banks use to create more currency so that there are always enough fiat dollars around for a growing population.

Since it is a creation of new money rather than a loan, why should people be forced to pay it back? The repayment of money to the banking system is the method used to keep an over-abundance of new money from glutting the market.

So, why should the banks keep the money they receive in loan payments since they created it out of thin air in the first place? They shouldn't. The repayment money should be returned to the borrower at the end of the repayment term. The banks should keep this term in mind so that near the end of it, they do not create too much new money through new "loans" thereby glutting the market.

Why do banks keep the money? Because they want the control rather than pass it on the the citizens of the country.

How is it that bankers can call it a loan when it is a creation of new money? In the past, bankers got together with lawmakers and made the banking acts (laws). In these laws, they redefined the word "loan" so that it could be used to mean creation of new money.

If it is not a loan, why is it that law enforcement can come after you if you do not repay it? The same reason that you can't get law enforcement to go after the banks to give you the money back to you at the end of the "loan" term. It says "loan" and they don't understand that it means anything else. Even when you show it to them under the banking laws, the meaning is so twisted and convoluted that law enforcement and judges cannot be made to easily see how it could be anything other than a loan. Besides, they don't really want to see it, because that would take some of their control over yo away from them. they might lose some of the money they get from convicting you.

Google: Two Faces of Debt

This is a Federal Reserve Bank (twisted) publication that explains it for you.